From the WSJ, although GasPak was out with hints of it earlier today...
This may not be all bad, and it all depends on what their 'mortgage-related assets' really are, but the bad bank-good bank idea that was floating around is likely not good for stakeholders in the long-run in this case. Allowing Citi to take the first 13 - 14% loss on assets and the government coming afterwards, might be a good deal for everyone if the government is receiving a fair insurance premium for their backstop and if Citi's MBS exposure is being hurt more by liquidity than credit.
Sam's Club Abruptly Closes 63 Stores
4 days ago